China factories log fastest growth in a year as war risks loom large [View all]

Source: Reuters

BEIJING, March 31 (Reuters) - China's factory activity grew at the fastest ​pace in a year in March, underpinned by improved demand, an official survey showed on Tuesday, a welcome relief for an economy grappling with global ‌supply chain strains and energy market volatility.

The stronger reading eases pressure on policymakers, though its durability is in doubt as surging energy prices driven by the Middle East war, and heightened growth risks, pose fresh headwinds for manufacturers reliant on exports and operating on thin margins.
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China's ​goods exports continued to power growth in January and February after last year's record $1.2 trillion trade surplus, buoyed by firm global demand for electronics, particularly semiconductors. The commerce ministry said last ​week the momentum looked set to hold, even as geopolitical strains linger.

Yet the war in the Middle East is raising concerns for policymakers.

Read more: https://www.reuters.com/world/asia-pacific/chinas-factory-activity-returns-expansion-pmi-shows-2026-03-31/